E9-3 (Algo) Preparing a Flexible Budget Performance Report [LO 9-2] Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month of June: (Ind the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Direct Material Direct Labor Variable Overhead Fixed Overhead Total Manufacturing Costs Actual Costs 565 units S S 18,900 29,600 11,650 14,900 75,050 Spending Variance Flexible Budget 565 units Volume Variance Master Budget 200 units $ $ 17,400 25,400 11,400 12,700 66,900

E9-3 (Algo) Preparing a Flexible Budget Performance Report [LO 9-2] Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month of June: (Ind the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Direct Material Direct Labor Variable Overhead Fixed Overhead Total Manufacturing Costs Actual Costs 565 units S S 18,900 29,600 11,650 14,900 75,050 Spending Variance Flexible Budget 565 units Volume Variance Master Budget 200 units $ $ 17,400 25,400 11,400 12,700 66,900

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 14CE: Refer to Cornerstone Exercise 8.13. In March, Nashler Company produced 163,200 units and had the...

See similar textbooks

Similar questions

Refer to Cornerstone Exercise 8.13. In March, Nashler Company produced 163,200 units and had the following actual costs: Required: 1. Prepare a performance report for Nashler Company comparing actual costs with the flexible budget for actual units produced. 2. What if Nashler Companys actual direct materials cost were 1,175,040? How would that affect the variance for direct materials? The total cost variance?
Factory overhead cost variance report Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 20,000 hours for production: Tannin has available 25,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 22,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows: Construct a factory overhead cost variance report for the Trim Department for July.
Required: Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month of June: Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Direct Material Direct Labor Variable Overhead Fixed Overhead Total Manufacturing Costs Actual Costs 505 units $ 18,300 29,000 11,050 14,300 72,650 Spending Variance Flexible Budget 505 units Volume Variance Master Budget 200 units 16,800 24,800 10,800 12,400 64,800
Required information [The following information applies to the questions displayed below.] AirPro Corporation reports the following for this period. Actual total overhead Standard overhead applied Budgeted (flexible) variable overhead rate Budgeted fixed overhead Predicted activity level Actual activity level Volume variance $ 28,225 $ 31,620 Volume Variance $ 2.10 per unit $ 11,500 Compute the volume variance and identify it as favorable or unfavorable. 11,500 units 10,200 units
Required: Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month of June: Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Direct Material Direct Labor Variable Overhead Fixed Overhead Total Manufacturing Costs here to search IMG_8420.jpg 19 Actual Costs 585 units $ $ O 19,100 29,800 11,850 15,100 75,850 10 C Spending Variance Master Budget 200 units $ $ 17,600 25,600 11,600 12,800 67,600 72°F Cloudy 0
Required information [The following information applies to the questions displayed below.] AirPro Corporation reports the following for this period. Actual total overhead Standard overhead applied Budgeted (flexible) variable overhead rate Budgeted fixed overhead Predicted activity level Actual activity level $ 28,325 $ 32,550 $ 2.10 per unit $ 12,700 12,700 units 10,500 units Compute the volume variance and identify it as favorable or unfavorable. Volume Variance Volume variance
ABC uses a standard cost system. Overhead cost information for Production for the month of December is as follows: Total actual overhead incurred P12,600 Fixed overhead budgeted P3,300 Total standard overhead rate per DLH P4 Variable overhead rate per DLH P3 Standard hours allowed for actual production 3,500 What is the overall or net overhead variance? State if favorable or unfavorable (e.g. 1000 favorable)
Required information [The following information applies to the questions displayed below.] AirPro Corporation reports the following for this period. Actual total overhead Standard overhead applied Budgeted (flexible) variable overhead rate Budgeted fixed overhead Predicted activity level Actual activity level Answer is complete but not entirely correct. Standard overhead applied Budgeted (flexible) overhead Volume variance Volume Variance ✓ S $ Compute the volume variance and identify it as favorable or unfavorable. $ $ 28,525 $ 31,620 28,525 X 12,600 x (2,400) Unfavorable $ 2.10 per unit $ 12,600 12,600 units 10,200 units
Required information [The following information applies to the questions displayed below.] AirPro Corporation reports the following for this period. Actual total overhead Standard overhead applied Budgeted (flexible) variable overhead rate Budgeted fixed overhead Predicted activity level Actual activity level $ 28,325 $ 32,550 $ 2.10 per unit $ 12,700 12,700 units 10,500 units Compute the (a) total overhead variance and (b) controllable variance and identify each variance as favorable or unfavorable. (Round "Variable amount per unit" to 2 decimal places.) Flexible Budget Flexible Budget at Variable Amount per Unit Total Fixed Cost 12.700 units 10.500 units Total flexible budget Controllable Overhead Variance Controllable overhead variance
Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September: Standards Direct materials Direct labor Variable overhead (per direct labor-hour) Fixed overhead (per month) FLACO Expected activity (direct labor-hours) Actual results Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual) Direct materials Direct labor Variable overhead Fixed overhead Price Variance K4 Efficiency Variance 0.75 pounds at $8.60 per pound 1.25 hours at $26.60 per hour $ 21.80 $ 417,120 17,380 10,600 pounds at $8.00 per pound 14,830 hours at $26.90 per hour $ 343,060 $ 389,740 12,260 units Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for…
Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September: Standards Direct materials Direct labor, Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual results Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual) Direct materials Direct labor Variable overhead Fixed overhead Price Variance F F KA -0.75 pounds at $8.00 per pound 1.25 hours at $26.00 per hour $ 21.20 K4 $ 416,400 17,350 Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. 10,300 pounds at $7.40 per…
( Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September: Standards Direct materials Direct labor Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual results Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual) Direct materials Direct labor Variable overhead Fixed overhead Price Variance $ 20.60 $415,680 17,320 0.75 pounds at $7.40 per pound. 1.25 hours at $25.40 per hour $ 319,060 $ 383,740 K4 10,000 pounds at $6.80 per pound 14,770 hours at $25.70 per hour K4 12,140 units Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for…